Dáil debates

Tuesday, 23 May 2017

4:15 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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7. To ask the Taoiseach the number of times the Cabinet committee on Brexit has met since June 2016. [23018/17]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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8. To ask the Taoiseach when the Cabinet committee on Brexit last met; and his plans to publish a paper on economic and trade issues related to Brexit. [23087/17]

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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9. To ask the Taoiseach the number of times the Cabinet committee on Brexit has met since January 2017. [23090/17]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 7 to 9, inclusive, together.

The Cabinet committee on Brexit met three times in 2017, namely, on 26 January, 8 March and 26 April. It has met a total of eight times since its first meeting in September 2016. In addition, Michel Barnier, the EU negotiator, attended a meeting with a number of members of the committee on 11 May.

On 2 May, the Government published a comprehensive document on Ireland and the negotiations on the UK’s withdrawal from the European Union under Article 50 of the Treaty on European Union. This document sets out the approach of the Government to the forthcoming negotiations, following the successful campaign to have key Irish issues recognised in the EU negotiating position.

Following on from this publication, work is under way to prepare a further paper on economic implications of the Brexit challenge. This will draw on the work to date across Departments, which will be developed to mitigate emerging sectoral challenges. The paper will build on ongoing cross-Government research, analysis and consultations and will reflect the core economic themes of the speech I gave to the Institute of International and European Affairs on 15 February. It will include issues such as sustainable fiscal policies to ensure capacity to absorb and respond to economic shocks, not simply from Brexit. There will be plans for policies to make Irish enterprise more diverse and resilient, to diversify trade and investment patterns and to strengthen competitiveness. It will prioritise policy measures and dedicate resources to protect jobs and businesses in the sectors and regions most affected by Brexit. It will realise economic opportunities arising from Brexit and will help businesses adjust to any new logistical or trade barriers arising. The paper will make a strong case at EU level that Ireland will require support that recognises where Brexit represents a serious disturbance to the Irish economy.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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I first acknowledge that the Taoiseach deserves to be congratulated for actually getting the EU - in its various position papers and outlines - to acknowledge the critical issue of Ireland. When will the Taoiseach publish the Brexit paper on economics and trade? In this Chamber we have talked a lot about Northern Ireland in the context of Brexit, and for very understandable reasons. An issue that does not get much attention, however, is the hundreds of thousands of jobs in the Republic of Ireland that may be adversely affected by a hard Brexit. The Taoiseach's friends, the Conservative Party in England, at this very moment is campaigning in the English broadsheets and tabloids and in other media such as radio and social media for a hard Brexit, for leaving the Single Market and for leaving the customs union. It will cause devastation in many sectors of Ireland's economy over the next three to ten years. The Taoiseach said some nice things about what he might do. The Labour Party has proposed a trade adjustment fund of €250 million. Does the Taoiseach have concrete proposals for addressing the economic and trade issues on Brexit?

There is also the slow seepage out of information that there will be ghost custom posts, maybe 20 km north and south of the Border, with all the implications we understand for Donegal, Derry and the north west of the North of Ireland. It is extraordinary that the Government is so silent on this matter given that Teagasc has recently stated the duties on beef, for example in a WTO situation, will run as high as more than 60%.

Photo of Carol NolanCarol Nolan (Offaly, Sinn Fein)
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The EU's 27 Ministers agreed on Monday the negotiating directives for the Brexit negotiations, which are now expected to begin in the week of 19 June. The directives agreed that the priorities in the first phase of negotiations would be: the status of the EU’s citizens in the UK and the 1.2 million Britons on the continent; the so-called Brexit bill for the UK; and the issue of a hard Border on this island.

We already know from David Davis's comments last week that Britain does not accept the priorities as set out by the EU. Of particular concern is the section which, again,

references the desire "to avoid a hard border" on this island, "while respecting EU law." Despite assurances by the Taoiseach in this Chamber that there would be no customs posts, this is the economic reality we now face as EU law will require it. It was confirmed last week by representatives of Revenue at the Oireachtas Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach. Revenue told the committee that more than 2 million HGV journeys take place between the North and South each year and that at least 8% of these journeys will need to be checked, including some by physical inspection. This means that at least 160,000 HGV vehicles will be subject to customs checks. The Revenue representative also stated there would be roaming border patrols to police and monitor those checks. That is a hard Border. The impact on the two economies on this island will be enormous. Currently, island-wide trade generates more than €3 billion annually. Thousands of jobs depend on this trade. This is one reason why Sinn Féin argued for the North to be designated a special status within the EU. At the same meeting of the joint committee on Finance, Seanadóir Rose Conway-Walsh asked John Callinan, from the Department of the Taoiseach, if the Government has ever raised the issue of designated special status with the EU. The answer was "No".

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Yesterday, the General Affairs Council agreed the more detailed negotiating directives, which follow on from the guidelines agreed at last month's summit. I do not believe there was anything surprising in these guidelines and it contains the reassurance concerning the European Union's citizenship right of Irish citizens in Northern Ireland, which we have advocated for here and in Brussels since early in the process last year.

What is of concern is the continued recurrence of the idea that any action will be constrained by regard to existing EU legal order and legislation. It is important that the Taoiseach clarifies his understanding of what is meant by the comment that anything that emerges from these negotiations will have to be within existing EU legal order and legislation. I know that Commissioner Barnier's position on this is different, but we are lacking some clarity in the matter.

I would also ask the Taoiseach to clarify whether there will be any flexibility around investment in much-needed infrastructure. While the Taoiseach discussed that issue in terms of the preceding question, there is a case to be made that because of Brexit, we need to be Brexit ready in terms of a range of infrastructure that could be modernised and upgraded to enhance the productive capacity of the economy. The Taoiseach might indicate whether there will be any flexibility available or what he thinks will be possible in this regard. He might also outline whether he has commissioned any legal or economic studies of the status of a Border special economic zone or on state aids for disrupted industries and regions?

4:25 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Deputies Burton, Nolan and Martin have raised a number of issues. The priorities, as outlined by Mr. Barnier during his visit to Ireland, follow what we had set out ourselves. I am glad that people recognised that. I thank all concerned for acknowledging that these issues formed part of the European Parliament's documents and the European Council decision. As pointed out by Deputy Martin, these have been approved by the General Affairs Council and will form the basis for the negotiations. The first three issues are, principles and modalities for whatever the liabilities are in respect of the UK, the Border issue, and the question of citizens' rights and reciprocal rights. No one underestimates the scale of what might happen. The impact of Brexit on the Irish economy will be significant, particularly if it is not handled in a proper, orderly and responsible way. We share the view, as does everybody else, regarding the need to maintain the closest possible trading relationship between the UK and the EU, but it will be difficult to retain it the same as it is now because if the UK sheds the Single Market, the status in respect of trade will be changed.

Let us be clear about it, Ireland's economic interests lie in a strong and well-functioning European Union with continued and unfettered access to the Single Market. It is where our people have continually said they want to be, as voted for in a referendum in the past. This issue is of immense importance to all our small and medium enterprises and companies that export. There will be a great deal of trading on this issue. Nobody is clear on where the road ahead will lead. If there was to be an end to the divorce proceedings in two years and no deal, what would be the outcome of that? The British Government might say that no deal is better than a bad deal, but no deal would be catastrophic in many respects for Ireland. I hope that the conclusions to the negotiations in respect of the first three priorities will bear fruit in order that we can get on to these details.

We are developing an economic paper, to which Deputy Martin referred. A number of issues have already been brought to light. We are working to improve the business environment and are examining new trade and investment strategies, with an intensified programme of trade missions. Enterprise Ireland is working with firms to help support product and service innovation; additional staff have been recruited; a €150 million loan was provided in budget 2017 for low-cost loans to farmers; and the national planning framework 2040 will be delivered this year, complemented by a ten-year national capital plan. I agree that we need to be Brexit ready. This means we must build the roadway to the north west to Derry. While there are some legal complications in that regard, we need to get on with our end of it.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The funding for it was cut.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It will be important that we make a case to Europe for assistance in that regard. The reason, in part, the Ministers for Finance and Public Expenditure and Reform are in Brussels today is to discuss a range of possibilities under the European Investment Fund. If we can get the Northern Ireland Executive functioning, the North-South Ministerial Council and cross-Border agencies and organisations can begin to work in that regard. All the scenarios are being examined.

On the issue raised by Deputy Nolan, we have said that we do not want a return to the type of Border that existed in the past. Taking the scenario that there will be no tariffs on any goods travelling between the Republic and Northern Ireland or between the Republic and Great Britain or vice versa, as is currently the case, there will still be two different jurisdictions, one of which, the Republic of Ireland, will still be part of the European Union while the Six Counties will be part of the United Kingdom. Clearly, there are differences of opinion as to what Scotland and Wales want in that they want to be part of the Single Market. I have always taken the view that the reason Europe now recognises Ireland's priorities is because it also understands the particular, special and unique circumstances that apply in Ireland, which is the reason for the peace process, the internal Border and why we cannot return to a hard Border which brought with it sectarian violence and so on. What we do in the scenario where there are no tariffs but two jurisdictions is one of the issues that, along with many other possibilities never thought of before, are being considered. The position will not become clear until such time as we reach the point where there has been substantial progress on the first three issues, namely, the principles and modalities in terms of whatever liabilities might apply, the Border situation, and rights and reciprocal rights.

In terms of what we, as a people, have acquired and what the British, as a people, have acquired since 1922 in the common travel area, we are confident we can retain all of that in a bilateral sense between ourselves and Great Britain. As Deputy Martin has often pointed out, when people voted for the Good Friday Agreement, they voted on the expectation of continuing to have European citizenship. All the people in Northern Ireland entitled to Irish citizenship are also entitled to European citizenship. A great deal of activity will take place on these issues.

When I discussed this with European leaders, it was agreed that whatever we would do would be in compliance with European legislation and the European legal system because that is where we are staying. While there may be differences in comment from some members of the British Government, we have called for a recognition of our priorities and the particular and unique circumstances that apply in Ireland, but the outcome will have to be in compliance with European legislation and we will see that that happens.